MPF Announcement 2018-12

MPF Direct Origination and Underwriting Updates

Effective Date: Immediately (Unless Otherwise Noted)

The following clarifications have been made to the MPF Direct Selling Guide:

IntroductionModified the language to indicate the overall responsibilities that PFIs have when originating and delivering loans under the MPF Direct product. Clarified that all items, except interim servicing and transfer of servicing, must be completed prior to closing with the Borrower. See MPF Direct Selling Guide section 1.1.

Holiday CalendarRemoved the holiday calendar from MPF Direct Selling Guide section 1.2.1 since holiday observance is announced by the Investor.

Ineligible Products/Loan Attributes
The list of ineligible products/attributes has been consolidated and relocated to MPF Direct Selling Guide section 1.3.

Best Efforts Lock PolicyClarified that the Mortgage Loan must be locked with the investor prior to closing the loan with the Borrower. See MPF Direct Selling Guide sections 1.6.1 and 1.6.2.

Lock Extension Pricing

Modified the fee table to display the fee in basis points to match the way the fee is displayed in the MPF Direct Portal. See MPF Direct Selling Guide section 1.6.3.

Appraisal ReviewAdded language to MPF Direct Selling Guide section 1.7.1 to clarify that Appraisals must be submitted to the Investor for value validation prior to closing the loan.

Single Loan ExceptionsThe single loan exception requirements have been consolidated into MPF Direct Selling Guide section 1.7.2. Additionally, for Loan Applications taken on or after January 1, 2018, the Demographic Information Addendum and the Universal Loan Identifier (ULI) must be included in the request.

Due Diligence ReviewThe requirements for submitting the Mortgage File and Collateral File for a Due Diligence Review have been consolidated into MPF Direct Selling Guide section 1.7.3. The requirement to include supporting appraisal documents was added. Additionally, for Loan Applications taken on or after January 1, 2018, the Demographic Information Addendum the Universal Loan Identifier (ULI) must be included in the review.

MERS in MaineUpdated the language in MPF Direct Selling Guide section 1.7.5 to reflect MERS requirements for loans secured by properties in Maine with Note dates on or after January 1, 2018.

Underwriting GuidelinesAdded references to the exhibits where the underwriting guidelines are housed. See MPF Direct Selling Guide section 1.8.

Early Mortgage Payoff and Early Payment DefaultThese topics were relocated to MPF Direct Selling Guide sections 1.10.2 and 1.10.3, respectively.

Servicing RequirementsClarified the PFI’s servicing responsibilities and removed the servicing transfer requirements that applied to loans closed on or before August 1, 2017. See MPF Direct Selling Guide section 1.10.